Which investment is better-Real Estate or Mutual Funds?

Which investment is better-Real Estate or Mutual Funds?

When it comes to discreet and tactful investment, it is always frustrating whether one should invest in property, gold or mutual funds. These investment areas are quite effective for those who are looking for long-term returns. However, it is essential to understand what the end goal of investment will be.long-term gains- Gold. So, let’s know which is better-Real Estate or Mutual Funds?

Let’s go to flashback at how the amount of gold and real estate has changed in the past 25 years. If you purchased 500 gms of gold back in 1997, then it would have priced you about Rs 2.35 lacs as the value per gm gold was Rs 472.5. However, the price of gold per gram now is Rs 3520 which means 500 gms of gold now costs Rs 17.5 lacs. The variation in the price of the gold in the last six months hasn’t been elevated which means that the net value is not prominent at the moment.

The amount has been consistently growing in the last few years. If you have made in investment in 1997 then there is a high chance that your property is worth crores presently.

Let us review the investment options:

Real Estate v/s Gold:

1. Slight volatile:

 In contrast to gold, a house is something everyone needs. Paying rent every month-end is not a smart financial move. With banks motivating your property purchase most investors are engaged in investing in property as it will give them a sense of security and immense return in the future. 

2. Value appreciation:

 As time flies, the value of the property rises. The gold, however, is driven by the need in the international market; the real estate is not reliant on the price of the global market. 

3. Lease: 

One major benefit of the real estate investment is that you can lease or rent it and get rental money in profit which is unhappily not the same in the matter of gold. 

4. Security: 

When you put your gold in the bank, the banks notify you that in the matter of theft, earthquake or any other accident, they are not liable for your gold. The same is not right in the case of the property. 

5. Benefits:

  • Tax benefit of maintaining a property that isn’t for purchasing or investing in gold.
  • The price of gold varies and you may not be able to exchange it at the price you bought it.
  • Property gives you a more suitable investment in return as equal to gold.
  • You spend what you see in the situation of real estate. There is no place of a filthy play which can be while purchasing gold. 

Real Estate v/s Mutual Funds

Which investment is better-Real Estate or Mutual Funds?

If you are puzzled about whether to invest in mutual funds or real estate, we have outlined a few points that can help you make the right decision.

1.Risk factor: 

When it comes to buying mutual funds, it comes with the uncertainties involved. This is not equal to real estate. The investment is constant with guaranteed returns.

2. Performance: 

The advantage of investing in real estate is that it shelters you and while the gains are slow, but they are worth it. 

3. Regulations:

 The government is executing consistent efforts to make the real estate sector more translucent while SEBI assures prompt resolution in case of any concern with your mutual fund investment.

4. Investment volume:

 Purchasing a house mostly requires a huge amount which isn’t the same as buying mutual funds.

5. Tax benefits

Mutual investment can give you tax benefit up to Rs 1.5 lacs though, buying a property can provide you tax benefit of more than that.

6. Liquidity:

 If you ever want to redeem your investment, you will be able to do it efficiently and quickly in terms of mutual funds. But, when it comes to real estate, retrieving money from the investment needs time.

7. Monitoring:

One can easily control and look up their mutual investment from anywhere in the globe. However, for the real estate property, one will have to give time and energy for its maintenance.

Do we hope after this detailed discussion you can surly decide that which is better-Real Estate or Mutual Funds? So, you can take a proper decision before Investment. Because it is essential to understand what the end goal of an investment.

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